(Yicai Global) June 12 – Chinese telecoms equipment maker Sunsea Telecommunications Co. [SHE:002313] will spend CNY296 million (USD44 million) to increase its stake in and take more control of one of its subsidiaries.
In a filing submitted yesterday, the firm disclosed plans to acquire a 26.9 percent stake in Sunsea Communication Service Co., a Shenzhen-based subsidiary, from seven minority shareholders. Following the transaction, the parent company will hold a 95 percent stake in the subsidiary.
The subsidiary, which was set up in 2002 and is primarily involved in power supply and communications engineering services, had nearly CNY1.76 billion (USD258 million) in total assets last year. Its operating revenue was CNY1.37 billion and it brought in CNY66 million in net profit.
Sunsea Telecommunications believes the acquisition will allow the firm to better manage the subsidiary and improve decision-making efficiency.